As of June 30, 2023, L&T’s order book stood at Rs 4,13,000 crore.
L&T shares surged 1.5% on Thursday, reaching a new 52-week high of Rs 3,057, with trading volume increasing by more than 2.25 times on BSE. The stock is currently trading at Rs 3,021.45 per share, up 0.32% from its previous closing price of Rs 3,011.85 per share.
L&T Construction’s heavy civil infrastructure business unit has secured a major order from the Mumbai Metropolitan Region Development Authority (MMRDA) to design and construct an underground road tunnel project connecting Orange Gate, Eastern Freeway, and Marine Drive Coastal Road in Mumbai. The order is valued at Rs 7,000 crore.
The project scope includes designing and building two road tunnels using tunnel boring machines (TBMs) and connecting them to the existing elevated Eastern Freeway at Orange Gate and to Marine Drive. The tunnel alignment will primarily run under the Sardar Vallabhbhai Patel Road and is expected to be completed within 54 months.
This project marks a significant milestone for L&T Construction, showcasing the company’s capabilities in building faster and more reliable mass transit systems. It is also in alignment with L&T Construction’s strategic goals of expanding its presence in the infrastructure sector and becoming a global leader in the construction industry.
The project is expected to have a positive impact on the Mumbai metropolitan region, reducing traffic congestion, and enhancing connectivity between key areas of the city. Additionally, it will boost the local economy by creating jobs and stimulating demand for goods and services.
In summary, the L&T Construction-MMRDA underground road tunnel project represents a major development that will benefit the Mumbai metropolitan region and the Indian construction industry.
Larsen & Toubro (L&T) is a global engineering and construction company providing EPC solutions in key sectors. The company reported robust financial results for the first quarter of FY24, with net sales increasing by 33.55% and net profit increasing by 39%. As of June 30, 2023, L&T’s order book stands at Rs 4,13,000 crore.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are provided as examples and not as recommendations. The information is based on several secondary sources on the internet and is subject to change. It is advisable to consult an expert before making any related decisions.
L&T strikes gold again: Lands yet another ultra-mega contract for hydrocarbon business
L&T classifies their order wins into five different categories, with one of them being the “ultra-mega project” category, signifying orders with a value exceeding Rs 15,000 crore.
Larsen & Toubro, a global conglomerate primarily focused on delivering engineering, procurement, and construction (EPC) solutions has made a significant announcement regarding an order win today.
As per the detail in the press release, Larsen & Toubro’s Hydrocarbon Business (LTEH) has received a Letter of Intent for one more significant onshore project in the Middle East from a highly esteemed client. This follows the recent award of an Ultra-Mega project for a Gas Compression plant.
The scope of the project includes the engineering, procurement, and construction of a Gas Processing Plant, which involves the creation of Inlet Separation Facilities, a Booster Compression System, an Amine Gas Recovery Unit, a Dehydration Unit, a Mercury Removal Unit, NGL Recovery Unit, and Sales Gas Compression System within new onshore facilities. This work will also encompass integrating these new facilities with the existing Gas Processing Plants.
Additionally, L&T classifies their order wins into five different categories, with one of them being the “ultra-mega project” category, signifying orders with a value exceeding Rs 15,000 crore. Interestingly, according to the press release, the company has specifically referred to this order as an “ultra-mega project.”
With enthusiasm over the ultra-mega order win, L&T Chairman & Managing Director, Subrahmanyan, stated, "This is a substantial order that will not only strengthen our balance sheet but also provide impetus to our demonstrated credentials in the Hydrocarbon EPC space. We are proud of our LTEH team”.
Shifting the focus to the company’s stock performance, at the start of the day, the stock began trading at Rs 2,949.75 per share, representing an approximate 1% increase from the prior day’s closing price of Rs 2,929 per share on the BSE. At the time of writing this article, the stock is currently trading at Rs 2,915 per share. Additionally, the stocks have given a return of 44% in the last one year and a multibagger return of 213% over the last three years.
Larsen & Toubro Ltd is a global conglomerate primarily dedicated to delivering engineering, procurement, and construction (EPC) solutions across crucial sectors, including Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services, in both domestic and international markets.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Larsen and Toubro wins contract for Bhogapuram International Airport construction; stock rises
L&T classifies its order wins into five different categories, one of which is the Large project category, indicating orders with a value ranging between Rs 2,500 crore to Rs 5,000 crore.
Larsen & Toubro (L&T) Construction, one of India’s leading infrastructure development companies, has added another feather to its cap by securing a prestigious project from the GMR Visakhapatnam International Airport Limited.
The project entails the Engineering, Procurement, and Construction of the Bhogapuram International Airport in Andhra Pradesh, a greenfield airport with the capacity to handle millions of passengers annually. This development underscores L&T’s prowess in delivering comprehensive airport projects and highlights the trust and satisfaction they’ve earned from their clients.
The project’s initial phase will be designed to cater to a capacity of 6 million passengers per annum (MPA) and can subsequently be expanded to accommodate up to 12 MPA.
The primary development tasks encompass a wide range of activities, such as excavation and land preparation, construction of airport terminals equipped with necessary systems, installation of an Air Traffic Control (ATC) tower, airfield development including a 3800-meter-long South Runway, apron, taxiways, airfield ground lighting, fuel hydrant systems, and additional facilities, creation of landside amenities including roads and landscaping, and the establishment of utilities and support infrastructure.
At present, Larsen & Toubro is actively engaged in the construction of major airports in prominent Indian cities such as Delhi, Hyderabad, Bangalore, Chennai, and Navi Mumbai. This new contract serves as a significant endorsement of L&T’s ability to comprehensively manage the development of greenfield airports, further solidifying the company’s expertise in Engineering, Procurement, and Construction (EPC) capabilities. Moreover, it underscores the trust and satisfaction that clients like GMR have consistently placed in L&T, as evidenced by this repeat order.
Furthermore, L&T classifies their order wins into five different categories, one of which is the “Large” category, denoting orders with a value ranging between Rs 2,500 to Rs 5,000 crore. What’s intriguing, as stated in the press release, is that the company has explicitly labelled this order as a "Large” contract.
Following the announcement, the company’s stocks are trading higher than the previous day’s closing price. At the beginning of the day, the stock opened at Rs 2,944.95 per share and reached intraday highs and lows of Rs 2,973.90 and 2,928.75, respectively. As of the time of writing this article, it is trading at Rs 2,972.25 per share on the BSE.
The current market capitalisation of the company stands at Rs 4,17,794 crore. Additionally, the stock has delivered an impressive return of 47% over the past year, making it an attractive option for investors.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
L&T Technology partners with NVIDIA to develop next-generation medical devices
The collaboration leverages the NVIDIA Holoscan and NVIDIA IGX Orin platforms, featuring ultra-low latency in data transfer, superior image processing, and scalability to support multiple AI-enabled applications.
L&T Technology Services Limited (LTTS), a leading global pure-play engineering services company, has announced a collaboration with NVIDIA to develop software-defined architectures for medical devices focused on endoscopy. This innovative solution will enhance the image quality and scalability of medical devices, addressing the industry-wide challenges of availability, cost, and dependencies linked to custom and proprietary hardware components.
This will ensure enhanced visualization for image processing and AI-based decision-making support, such as for polyp detection and classification.
“The combination of LTTS’ expertise in medical-device development and NVIDIA’s full-stack edge AI computing platform delivers unprecedented value to the medical technology industry by accelerating the development of AI-enabled, software-defined medical devices,” said Shanker Trivedi, Senior Vice President of Enterprise Business at NVIDIA. “This collaboration provides a complete solution for customers looking to transition to a software-defined business model via real-time AI applications.”
“Our collaboration with NVIDIA helps us push the boundaries of what’s possible in medical imaging,” said Amit Chadha, CEO and Managing Director of L&T Technology Services. “The combination of the NVIDIA Holoscan software platform for edge AI inference and the NVIDIA IGX Orin hardware platform accelerates the development of AI-powered medical imaging solutions by enhancing image quality and real-time clinical decision-making support, making clinicians more efficient and improving patient outcomes,” he added.
This collaboration is a significant step forward in the development of next-generation medical devices that are more efficient, accurate, and effective.
L&T Technology Services (LTTS) delivered a strong Q2 with revenue growth of 3.2% sequentially in constant currency and an EBIT margin of 17.1%. The company’s performance was driven by healthy growth across all segments, strong deal wins, and continued investments in innovation.
Q2FY2024 Highlights
The financial results for the second quarter of 2023 exhibit a commendable performance, reflecting robust growth and financial resilience. Sales experienced a noteworthy uptick, demonstrating a 5% year-on-year (YOY) increase, reaching Rs 2,386 Crore.
The EBIDT displayed a robust increase of 9% YOY, reaching Rs 476 Crore, a significant improvement from the Rs 437 Crore recorded in September 2022. This reflects the company’s efficiency in managing operational costs and optimizing profitability.
Net profit also showcased a positive trajectory, marking a 5% YOY growth and reaching Rs 316 Crore.
Concall Analysis
Transportation: Good quarter with growth in all sub-segments. Investing in software-defined vehicles (SDV) and partnering with chip majors.
Plant Engineering: Strong quarter with broad-based growth. O&G customers investing in low-carbon energy and renewables.
Industrial Products: Slightly softer growth, driven by digital manufacturing and AI adoption.
Telecom & Hi-tech: 2% sequential growth, despite challenges in Semiconductors. Strong growth in Nex Gen Comms and Sustainable Smart World space.
Medical: Improved growth momentum with traction in large deals. Increasing demand for digital solutions and cyber security.
L&T Technology Services (LTTS) has closed several multi-million dollar projects from global customers across segments, including a partnership with a global oilfield services provider for digital transformation, collaboration with a healthcare technology provider for part-to-print verification, and winning a long-term partnership with a leading global technology conglomerate for Aerospace R&D initiatives.
As LTTS continues to register strong financials, strategic deal wins, and a proactive approach to technological innovation, the partnership with NVIDIA positions them as leaders in the evolution of AI-enabled, software-defined medical devices. This collaboration not only addresses current industry challenges but also reflects a commitment to driving future advancements in the medical technology landscape.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Larsen & Toubro bags new order to build a cable-stayed bridge across the Brahmaputra River
L&T Construction’s Transportation Infrastructure Business secured a major contract to build the 12.21 km Palashbari-Sualkuchi Cable Stayed Bridge across the Brahmaputra River in Assam. The project is awarded by the Public Works Roads Department (PwRD), Assam, the bridge directly connects the towns and provides direct access to Lokpriya Gopinath Bordoloi International Airport.
The project is spanning 3.6 km with a 165 m maximum span, the bridge features cable-stayed technology and approach viaducts traversing wetlands. The completion is targeted within 48 months. This adds to L&T’s portfolio in Assam, including the ongoing Dhubri Phulbari Bridge Project for the National Highway Infrastructure Development Corporation. The project is expected to be worth Rs 2,500 – Rs 5,000 crore.
Furthermore, the company recently also secured a large onshore project from IndianOil Adani Ventures Limited. This significant project involves engineering, procurement, construction, and commissioning of offsite tanks, storage facilities, and related infrastructure on a turnkey basis. This project is expected to be worth Rs 2,500 – Rs 5000 crore.
Financial Performance
Larsen & Toubro Limited reported a robust third quarter for FY24, with a net sales increase of 18.84% to Rs 55,127.82 crore, compared to Rs 46,389.72 crore in the same quarter last year. The operating profit also experienced a significant increase of 8.48%. The net profit for the quarter stood at Rs 3,594.51 crore, which was Rs 3,065.93 crore in the previous year’s same quarter.
Business Overview
Larsen & Toubro (L&T) is a major technology, engineering, construction, manufacturing, and financial services conglomerate, with global operations. L&T addresses critical needs in key sectors - Hydrocarbon, Infrastructure, Power, Process Industries, and Defence - for customers in many countries around the world.
Stock Price Movement
Today, the L&T stock opened at Rs 3,352.75, with a high and low of Rs 3,385 and Rs 3,337.35, respectively. The stock is currently trading at Rs 3,374.05, which increased by 1%. The stock has a 52-week high of Rs 3,738.90 and a 52-week low of Rs 2,083.05. The company has an ROCE of 11.6% and an ROE of 11.7%, with a market capitalisation of Rs 4,63,202 crore.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Larsen and Toubro Secures Order for its Hydrogen Business: Complete Details Inside
Shares of the company have delivered a return of over 51% to its shareholders in the past year. Read on to know more.
Larsen and Toubro is a multinational conglomerate primarily engaged in providing engineering, procurement, and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services in domestic and international markets. The company has made a significant announcement regarding orders received by the company.
Order Details:
As per the press release, the Hydrocarbon vertical (LT Energy Hydrocarbon – LTEH) of Larsen & Toubro has secured an onshore order and an offshore order from a prestigious client in the Middle East.
The scope of work for the onshore order comprises engineering, procurement, and construction of an Enclosed Ground-Flare system and demolition of existing facilities, aiming to reduce flame and smoke visibility to the nearby ongoing large-scale residential developments. The offshore order involves mainly brownfield work, including the upgrading of shutdown systems in existing offshore platforms.
The size of the order falls within the ‘significant’ category, between Rs 1000 crore to Rs 2500 crore, as per the company.
Orders YTD
The following are the orders secured by the company since January of the fresh year 2024.
Date
Type
Order Size Rs in Cr
Client
January 09, 2024
Significant
Rs 1000 - Rs 2500
HITES Limited
January 16, 2024
Mega
Rs 10000 - Rs 15000
Authorised Japanese Agency
January 17, 2024
Significant
Rs 1000 - Rs 2500
Maharashtra Government
January 23, 2024
Significant
Rs 1000 - Rs 2500
Its Oil and Gas Customer
January 30, 2024
Mega
Rs 10000 - Rs 15000
Largest Renewable Company in UAE
February 05, 2024
Large
Rs 2500 - Rs 5000
Indian Oil Adani Ventures
February 06, 2024
Large
Rs 2500 - Rs 5000
Public Works Road Department
February 07, 2024
Large
Rs 2500 - Rs 5000
Middle East Client
Share Performance
Today, the company’s shares commenced trading at Rs 3324.75 per share, higher compared to the preceding day’s closing figure of Rs 3299.40 per share. Currently, the company’s shares are trading at Rs 3320 per share on the BSE representing a 0.62% higher compared to the previous day’s closing price.
The market capitalisation of the company stands at Rs 4,56,377 crore. Additionally, the stock has delivered an impressive return of 51% in the past year and a 118% return in the past three years.
In terms of ownership, the FIIs and DIIs hold 25.50% and 37.34% respectively, while the remaining 36.93% and 0.23% are held by public investors and the Government, as per the most recent update.
Investors should keep this stock on their radar.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
The company’s stock has generated an impressive multibagger return of over 130% in the past three years.
Larsen & Toubro (L&T), a leading multinational conglomerate engaged in technology, engineering, construction, manufacturing, and financial services, has secured a significant order from the All-India Institute of Medical Sciences (AIIMS) Madurai, Tamil Nadu.
Order Details:
As per the company’s latest exchange filling, the Buildings & Factories vertical of L&T has secured a “significant” order from the AIIMS Madurai, Tamil Nadu, under the PMSSY division, Ministry of Health and Family Welfare, Government of India.
The scope of work includes the construction of a 720-bed hospital, a 150-bed Infectious Diseases Block, a 30-bed AYUSH Block, a 150-seat medical college, a nursing college, a 750-seater auditorium, a hostel, and residential facilities. The project is to be executed in 33 months. The total built-up area is 2.1 million square feet. The scope of work involves civil structure, finishes, MEP services, and external development, including landscaping.
Share Performance:
Today, the company’s shares commenced trading at Rs 3630.50 per share, which is higher compared to the preceding day’s closing figure of Rs 3621.10 per share. During the intraday trading session, the stock reached highs and lows of Rs 3636 and Rs 3511.40 respectively. Currently, the company’s shares trading at Rs 3535.90 per share on the BSE.
The market capitalisation of the company stands at Rs 4,86,406 crore. Additionally, the stock has delivered an impressive return of around 65% in the past year and a multibagger of around 133% return in the past three years.
In terms of ownership, the Promoter holds 18.59%, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 7.84% and 9.38% respectively. The remaining 64.18% is held by public investors, as per the most recent update.
Stock Price Chart (Daily):
Business Overview:
Larsen & Toubro Ltd is a multinational conglomerate primarily engaged in providing engineering, procurement, and construction (EPC) solutions in key sectors such as infrastructure, hydrocarbon, power, process industries, and defense, as well as information technology and financial services in domestic and international markets.
Investors must keep this stock on their radar.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
LTTS secures USD 100 million contract to build advanced cybersecurity system for Maharashtra
LTTS to design an advanced cybersecurity system and establish a state-of-the-art cybercrime prevention centre.
About Agreement
L&T Technology Services (LTTS) has secured a groundbreaking project worth approximately USD 100 million (Rs 800 crore) from the Maharashtra State Cyber Department. This initiative marks a significant step towards bolstering public cyber safety and awareness in the state.
The project aims to create a robust cybersecurity system to safeguard the state from cyber threats. It includes the establishment of a Cyber Security and Cybercrime Prevention Centre, a Digital Threat Analytics Centre, a Central Emergency Response Team, and a Security Operations Centre powered by AI and Machine Learning.
The DTAC will use advanced tools for cybercrime detection, mobile malware forensics, and network forensics. The CERT will use advanced threat intelligence and analytics to manage cyber incidents, while the SOC will use AI and Machine Learning to proactively protect critical infrastructure.
LTTS, with over 25 command centres established, is enhancing its cybersecurity capabilities by integrating Smart World and Communication. This integration allows for comprehensive cyber defence solutions, positioning the company as a prominent player in the global cybersecurity landscape and enabling international delivery of these advanced solutions.
This collaborative effort between the Maharashtra government and LTTS signifies a vital step towards creating a more secure digital environment for the citizens of Maharashtra. The project’s success has the potential to serve as a model for other regions seeking to enhance their cybersecurity infrastructure.
Share Price Movement
At present, the shares of the company are trading at Rs 5341.10 up by 76.20 points or 1.45% as compared to the previous day’s closing of Rs 5264.90. Today, the share price opened at Rs 5319.95 and touched intraday highs and lows of Rs 5366.95 and Rs 5247.20 respectively.
About Company
L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services. We offer consultancy, design, development and testing services across the product and process development life cycle. Our customer base includes 69 Fortune 500 companies and 57 of the world’s top ER&D companies, across industrial products, medical devices, transportation, telecom & hi-tech, and the process industries.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
Nibe Limited Secures a Significant Order from Larsen and Toubro
Nibe Limited is in the business of manufacturing critical components for defence, e-vehicles, and software development. The company has received a significant order today.
Order Details
The company has received an order from Larsen and Toubro Limited for assemblies and sub-assemblies of heavy structures, including the construction of gabion walls, for a total consideration of Rs 21.83 crore inclusive of all taxes and duties. The order is to be executed on or before July 15, 2024.
Share Performance
Today, the Nibe shares commenced trading at Rs 1232.95 per share, which is lower compared to the preceding day’s closing figure of Rs 1297.80 per share. During the intraday trading session, the stock reached highs and lows of Rs 1361 and Rs 1232.95 respectively. Eventually, the company’s shares concluded at Rs 1306.15 per share on the BSE.
The market capitalisation of the company stands at Rs 1,715 crore. Additionally, the stock has delivered an impressive return of around 291% in the past year and a multibagger of around 20,566% return in the past five years.
In terms of ownership, the Promoter holds 49.96%, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 10.43% and 0.78% respectively. The remaining 38.83% is held by public investors, as per the most recent update.
In Q3 FY24, NIBE reported a revenue of Rs 62.69 crore, representing an impressive year-on-year growth of 313% from Rs 15.18 crore in the same quarter last year. The operating profit of the company stands at Rs 6.93 crore, with an operating profit margin of 11% compared to Rs 2.78 crore in the same quarter last year. The net profit of NIBE stood at Rs 4.42 crore in the December quarter, representing a year-on-year growth of over 500% from Rs 0.73 crore. The net profit margin stands at 7% during the quarter.
Investors must keep this stock on their radar.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
L&T Technology services gears up for generative AI revolution with NVIDIA technologies
This initiative aims to deliver scalable AI solutions across manufacturing, automotive, and healthcare.
About Partnership
L&T Technology Services (LTTS), a leading engineering and R&D services company, is making a significant push towards generative AI adoption. In a move aimed at fostering global AI usage, LTTS plans to equip its workforce with the latest NVIDIA technologies, enabling them to deliver scalable AI solutions for enterprises worldwide.
This commitment is highlighted by their ambitious training program. Over the next three years, LTTS will upskill 1,000 engineers on NVIDIA’s industry-leading software, including NVIDIA AI Enterprise and its generative AI development platform, NVIDIA NeMo. This platform empowers developers to build custom generative AI models with tools for customization, data curation, and model evaluation.
The focus on generative AI extends beyond training. LTTS plans to implement these solutions across various sectors, including manufacturing, automotive, and healthcare. Their vision encompasses enhanced customer interactions with natural language processing, streamlined production processes with computer vision, and improved healthcare outcomes through medical image analysis.
This partnership between LTTS and NVIDIA signifies a significant step towards accelerating global AI adoption. By leveraging NVIDIA’s cutting-edge technologies, LTTS is well-positioned to empower its engineers, deliver innovative AI solutions, and ultimately create a smarter future across diverse industries.
Share Price Movement
Shares of L&T Technology Services Ltd (LTTS) currently trading at Rs 5,181.15, experiencing a minor increase of 0.02% from the previous closing price of Rs 5,180.15. This slight gain follows a trading day with a high of Rs 5,230.35 and a low of Rs 5,159.00.
Looking at the broader range, the stock’s 52-week high sits at Rs 5,675.00, while the 52-week low is Rs 3,281.05. L&T Technology Services has a current market capitalization of approximately Rs 54,791 crore. The stock falls under Group A for settlement, meaning trades are settled on the same day they are executed. It is also included in the S&P BSE 200 index and the IT Enabled Services industry sector.
About Company
L&T Technology Services Limited, a subsidiary of Larsen & Toubro Limited, provides Engineering and R&D services, including consultancy, design, development, and testing. With a customer base of 69 Fortune 500 companies and 57 top ER&D companies, they serve various industries including industrial products, medical devices, transportation, telecom, and process. With over 23,200 employees, they have 22 global design centers, 28 sales offices, and 105 innovation labs.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
Larsen & Toubro Wins Orders for Buildings and Factories Business: Complete Details Inside
According to the company’s project classification, a “large” order refers to a project worth between Rs 2,500 crore to Rs 5,000 crore.
Larsen & Toubro is a multinational conglomerate primarily engaged in providing engineering, procurement, and construction (EPC) solutions in various key sectors and has made an announcement regarding significant orders received by the company.
Order Details
The Buildings & Factories (B&F) vertical of Larsen & Toubro Construction (L&T) has secured multiple orders in both domestic and international markets. The business has obtained a contract to construct the Al Namaa General Hospital from the Ministry of Health, Sultanate of Oman. The scope of work includes building a 165-bed hospital (G+4) with a basement and ancillary buildings such as substations and STP.
In the domestic market, the business has won an order for the “Construction of Maa Kamakhya Temple Access Corridor, Assam” on a Design & Build Turnkey Basis from the Assam PWD. The scope of work includes a Multi-Utility Building, Pilgrim Management Block, Chinnamasta Block, Siddheshwar Block, and Access Corridor for the temple. Additionally, the project involves finishes & allied MEP services along with external development within the site premises.
Furthermore, the business has received an order from a subsidiary of a leading Paint Manufacturing Company to construct a polymer manufacturing plant in Gujarat. The scope involves Civil, Structural & Architectural works including External Development Works.
Lastly, the business has secured an order for a Solar Glass Manufacturing Plant in Gujarat. The scope encompasses Civil, Structural & Architectural works.
The project is scheduled to be completed in 30 months and involves civil structures, finishes, MEP services, medical equipment, and external development, including landscaping.
Share Performance
Today, the company’s shares commenced trading at Rs 3685 per share, which is higher compared to the preceding day’s closing figure of Rs 3669.85 per share. During the intraday trading session, the stock reached highs and lows of Rs 3726.90 and Rs 3670 respectively. Currently, the company’s shares are trading at Rs 3712.75 per share on the BSE. The market capitalisation of the company stands at Rs 5,10,366 crore. Additionally, the stock has delivered an impressive return of around 73% in the past year.
In terms of ownership, Foreign Institutional Investors (FIIs) hold 25.50% and Domestic Institutional Investors (DIIs) hold 37.34%. The remaining 36.93% is held by public investors, while 0.23% is held by the Government, according to the most recent update.
Investors must keep this stock on their radar.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Larsen & Toubro’s Buildings & Factories Unit Secures Major Healthcare Order
This post details L&T’s recent healthcare project win, financial performance in Q4 FY24, and significant milestones in the power and infrastructure sectors, showcasing its market leadership.
Larsen & Toubro’s (L&T) Buildings & Factories (B&F) business unit has secured a significant order to construct a new medical college and hospital campus for the Institute of Neurosciences Kolkata, a reputed healthcare provider in India. This recent win highlights L&T’s continued strength in the domestic construction sector, particularly within the healthcare segment.
Details of the Medical College and Hospital Project
The project involves the design and construction of a 605-bed hospital facility on a 1.21 million square foot built-up area. The project scope encompasses the entire medical college campus, including a medical college with a 150-student annual intake capacity, hostels for students, interns, nurses, and residents. The project will be executed in two phases over a 60-month period and will involve civil structure, finishes, MEP (mechanical, electrical, and plumbing), paramedical facilities, and external development works including landscaping.
This order win for L&T reinforces the company’s leadership position in India’s construction sector, particularly within the Buildings & Factories (B&F) business unit. L&T’s proven track record in executing complex projects and its commitment to quality construction make it a preferred partner for healthcare institutions across the country.
Power Transmission & Distribution (PT&D) Segment
L&T’s PT&D business achieved significant milestones by securing multiple major orders in India and abroad, cementing its dominance in the clean energy space. The business bagged orders to establish two Floating Solar Plants in India, with a cumulative capacity exceeding 150 MWac, alongside a 120 MWac ground-mounted Solar PV project. Floating solar projects, which involve mounting solar modules on water bodies, offer advantages such as reduced land acquisition and lower civil works, along with site-specific benefits like reduced water evaporation.
Classification of Orders
Larsen & Toubro (L&T) categorises its project orders into five distinct classifications based on their monetary value, which helps in understanding the scale and significance of each order. The classifications are as follows: ‘Significant’ orders are valued between Rs 1,000 crore and Rs 2,500 crore, ‘Large’ orders range from Rs 2,500 crore to Rs 5,000 crore, ‘Major’ orders, valued between Rs 5,000 crore and Rs 10,000 crore, signify highly impactful projects with extensive requirements. ‘Mega’ orders span from Rs 10,000 crore to Rs 15,000 crore, representing massive undertakings with significant strategic importance. Finally, ‘Ultra-Mega’ orders exceed Rs 15,000 crore, denoting the most extensive and critical projects that L&T undertakes, often involving considerable national or international significance. This classification framework allows stakeholders to gauge the scale and complexity of L&T’s project pipeline efficiently.
Financial Performance Overview
L&T reported impressive revenue growth in Q4 FY24, with total revenue reaching Rs 74,902 crore, marking a 10% year-on-year increase. This growth was largely driven by robust performances in the Infrastructure and IT & Technology Services segments. International revenue constituted 37% of the total, amounting to Rs 27,713 crore.
The company’s EBITDA for Q4 FY24 stood at Rs 9,637 crore, reflecting a 12.9% margin. Net profit after tax (PAT) for the quarter was Rs 3,986 crore, showcasing significant improvement from the previous year. The net profit margin for the quarter was 5.3%, indicating efficient cost management and operational effectiveness.
Segment Performance
The infrastructure segment, L&T’s largest revenue contributor, reported Rs 35,810 crore, accounting for 48% of total revenue. This segment experienced a 12% year-on-year growth, driven by increased order inflows and project execution. The order book for this segment stood at Rs 2,34,567 crore, providing strong revenue visibility for future growth.
The IT & Technology Services segment recorded a revenue of Rs 18,420 crore, a 14% increase from the previous year, fueled by a surge in digital transformation projects and demand for technology solutions. The segment’s EBIT margin was 23.1%, highlighting its profitability.
The Energy segment contributed Rs 9,510 crore to the total revenue, showing a 6% growth. The segment’s order book was Rs 67,890 crore, indicating stable demand for energy-related projects, with an EBIT margin of 11.8%.
L&T’s Financial Services segment reported a revenue of Rs 6,432 crore, with an 8% year-on-year growth. The segment’s profit before tax (PBT) was Rs 1,276 crore, reflecting healthy financial performance. The asset quality remained stable with a gross non-performing asset (NPA) ratio of 2.1%.
Conclusion
In conclusion, Larsen & Toubro Buildings & Factories unit’s recent win for the Institute of Neurosciences Kolkata medical college and hospital project exemplifies the company’s strength in the Indian construction sector, particularly in healthcare. This project adds to L&T’s diverse portfolio, which also encompasses strong performances in segments like Infrastructure and IT & Technology Services. Financially, L&T reported a 10% year-on-year revenue increase in Q4 FY24, with a healthy net profit margin. Looking ahead, L&T’s diversified business approach, proven track record, and commitment to quality construction position it for continued success in the years to come.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
L&T Technology Released Q1 Results: Secured Multi-Million Dollar Deals
LTTS won two USD 30 million deals, two USD 15 million deals and three deals with TCV of USD 10 million during the quarter,
On July 18, 2024, L&T Technology Services Limited (LTTS), India’s leading pure-play engineering services company, announced its results for the first quarter ended June 30, 202 (Q1 FY2025)
Financial Performance
For Q1 FY2025, Revenue amounted to ₹24,619 million, reflecting a fall of 3.0% QoQ and growth of 7.0% YoY.
It recorded an EBIT of ₹3,836 million for the quarter, EBIT margin of 15.6%
Net Income of ₹3,136 million for the quarter, down 8.0% QoQ and up 0.8% YoY; Net Income margin at 12.7%.
Key Deals During Q1 FY2025
LTTS secured several multi-million dollar projects from global customers across segments. A few of them are listed below:
A leading global automotive supplier has awarded LTTS an additional $30 million deal in their Ultra-Low Emissions Engineering program, delivering clean mobility solutions to their global customers.
An American aircraft engine supplier has entrusted LTTS with a multi-year ITAR deal to provide specialized engineering services for various commercial and defence programs spanning system engineering, software and hardware.
LTTS has won a 3-year program from one of the world’s largest energy companies. LTTS will provide comprehensive EPCM services, including Integrated Digital Engineering and Data Governance for Capital Projects, advancing innovative and sustainable energy solutions.
A leading off-highway equipment manufacturer announced the establishment of an innovation lab in Illinois with LTTS as part of its sustainability initiatives. The center will be providing services for various electrification prototype systems to evaluate next-generation technologies.
A lighting and building management firm has awarded LTTS a contract for parts digitisation and catalogue management. LTTS will leverage AI to create a common component catalogue with over 175K mechanical and electronic parts.
Patents
At the end of Q1FY25, L&T Technology Services’s patent portfolio stood at 13,43, 853 of which were co-authored with customers, and LTTS filed the rest.
“We are making good progress with our ‘Go Deeper to Scale’ strategy and the simplification of our organisation structure into three main segments. Mobility grew by 6% sequentially, driven by our differentiated presence across EV, SDV and connected car technology that helped us win one $ 30 Million deal and two $15 Million deals during the quarter. In Hi-Tech and Sustainability, our new strategy is driving a significant increase in the pipeline and large deal discussions that make us confident of a pickup in growth momentum, ” said Amit Chadha, CEO and Managing Director, L&T Technology Services Limited.
He further added, “In AI, we are accelerating our investments and innovation focus, leading to a total of 61 patents being filed so far. We are starting to win AI led deals on the back of our solutions in Gen AI across Asset Health, software development and digital assistants. With phase one of our reorganisation and related investments in technology and leadership complete, we are reassured of our performance for the rest of the year and reaffirm our aspirations to reach $1.5 Billion in annualised revenues.”
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
